NEW DELHI: The Securities and Exchange Board of India (SEBI) has uncovered surprising correlations between intraday trading performance and personal attributes such as marital status and gender in a recent comprehensive study. According to the study, married traders not only experience a lower proportion of losses but also generate a higher proportion of profits.
The study, which analyzed trading behaviours in the equity cash segment for the financial years FY19, FY22, and FY23, found that married traders demonstrated better performance across several key metrics, with a lower proportion of loss-makers compared to singles. For instance, while 75% of single traders were loss-makers in FY23, only 67% of married traders experienced losses.
Additionally, married traders were observed to execute a higher average number of trades, suggesting greater market engagement. In terms of profit, married traders were ahead. In FY23, the proportion of married profit-makers was 33%, while single profit-makers stood at 27%.
The study also highlighted notable differences between male and female traders. Female traders consistently showed a higher proportion of profit-makers compared to their male peers. In FY23, male traders with an annual intraday turnover exceeding Rs 1 crore reported an average loss of Rs 38,570, whereas female traders in the same category incurred a lower average loss of Rs 22,153. Despite these findings, the proportion of female intraday traders declined from 20% in FY19 to 16% in FY23.
Age was another significant factor influencing trading performance. The study revealed that younger traders, particularly those under 20, experienced higher rates of loss-makers, with 81% reporting losses in FY23. In contrast, traders over 60 years old had the lowest proportion of loss-makers at 53%.
Despite these insights, the study noted that a substantial 70% of individual intraday traders in the equity cash segment incurred losses in FY23. However, the segment witnessed a dramatic increase in participation, with the number of individual traders soaring by over 300% from 2018-19 to 2022-23, underscoring a growing interest in intraday trading.
This extensive analysis by Sebi provides valuable insights into the factors influencing trading success and highlights emerging trends in the equity markets.